660 Great South Road, Ellerslie, Auckland

LQ Ellerslie:

Located in 660 Great South Road, Ellerslie, Auckland at the core of Central Park Ellerslie. Its close proximity with the Ellerlie train station (just 4 minutes’ walk), easy access to the motorway makes this hotel very appealing for people looking for having a hotel outside Auckland CBD but still being able to be at town in just a few minutes.

This hotel is still under construction and will be open on Q3 Dec 2023.

Hotel units from $252,680

Rent Per year: $15,000 +gst

Outgoings: $2,240

Gross return: 6%.

Estimated Net return: 5%

HOTEL UNITS

Diversify your portfolio could be the best option to navigate the current market policies. You can tip your toes from as little as $252K on a commercial freehold property.

These commercial freehold properties are hotel units that come with a lease in place, and are already tenanted by a hotel operator. With the tenant in place, the owner received a guaranteed monthly income in accordance with the lease agreement. The amount of income is dependent on the type of hotel room purchased.

A hotel units is a perfectly approachable first step towards owning commercial property, allowing investors to diversify their residential holdings and accessing benefits that residential doesn’t provide. A hotel unit is also much more simple and cost effective option than purchasing a retail or office space, where cost can be high and an intimate understanding of leases is often required.

Key details of buying a hotel unit:

- The unit is purchased with a lease in place

- The lease term with the hotel operator is set at 15 years + three 5 years rights of renewal.

- As this is a commercial asset, your purchaser is GST zero-rated

- Your only outgoings are Body Corporate frees and rates.

Key benefits of Hotel units:

- Freehold sale-able investment.

- 10 days free stay accommodation per year.

- 2% annual rental increase after year 3, with market reviews every 5 years.

Its also a hassle free investment:

- You don’t need to worry about finding a tenant or managing the property, it’s all done for you. You get to enjoy a passive income.

- Commercial leases are not subject to the residential tenancies act

- The investment value is considerable less than buying a residential property

- As this is a commercial property, overseas investor (non-residents) can invest in the unit (however they must be GST registered).

- Your rental income will be deposited monthly on arrears to your preferred NZ bank account.